Golden State Resources owns 100% of the Leonora Project.

Located 30 km NE of the Sons of Gwalia Gold Mine (>3 million oz) the Leonora Project is highly prospective for large tonnage gold and base metal deposits, fitting the Company's exploration strategy for the discovery of a major deposit through acquisition of significant land holdings in preferred geological settings.

The project covers greenstones on the southern end of the Bundarra Granite Batholith, and at the zone of intersection of the gold mineralised Mertondale Shear with the major regional Kilkenny Lineament. Other gold deposits in a similar structural position on the west and northern extremities of the Bundarra Batholith include LionOre's Thunderbox (2 million oz) and Barrick's Centenary (>1 Moz) deposits.

Drilling by Golden State and previous explorers has located gold mineralisation across the project. Mineralised structures are broad and intensely altered with zones of gold anomalism up to 150 metres thick. Drilling in the southern part of the project produced intersections of up to 13m at 3.46 g/t gold, indicative of the potential of the area for good grades and widths.

The northern part of the project area is also prospective for Teutonic Bore-style base metal mineralisation with zones of sulphide mineralisation and gossan in felsic volcanic rocks located by the Company and previous explorers. The south-eastern part is structurally similar to the nearby Thunderbox gold discovery.